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Customer based tracking of the coil or sheet pack or structures either within the plant or at the warehouse pose a big challenge for steel manufacturers. Computer aided tracking system and storage system is a boon and becoming inevitable both interms of cost saving, quality, safety and total customer satisfaction. Automatic storage system could avoid prone material handling accidents in addition to insuring highest turnovers of materials received and shipped per hour with modern SWHMS ( Steel Warehouse Management System) which is manually unthinkable. Modern Storage system is not only for the finished material but is an integrated arrangement of process and finishing lines interconnected by an automatic material handling, Automatic storage and retrieval system (ASRS) with respect to raw material, work in progress and finished material to insure flexible and increased productivity with absolute quality and safety insuring profitability. This type of automatic storage and retrieval system could insure availability of material at each stage in time avoiding bottlenecks and enhancing efficiency but also reducing the amount of capital tied up with the work in progress. These material movements, storage and retrieval are programmed and managed by PLC and centralized computer system. There are various options available in ASRS like one level storage or multilevel storage and also on tracking RFID, simple Barcode tracking or simple position tracking. With the use of self loading and unloading (SLU) transfer cars and Rack supported buildings which could save cost phenomenally by avoiding unnecessary EOT cranes and corresponding heavy building structures. An analysis on practical situation with cost effective technical solution and case studies is made in this paper.